Times are really tight money-wise and every little saving can make a difference for cash-strapped families. For many a car is an essential item and therefore insurance for their vehicle is a must-have. However, depending on your circumstances, this can be very expensive.
To help you get the cheapest deal on your car insurance WalesOnline has collated the best advice from Confused.com, GoCompare, and Martin Lewis' MoneySavingExpert to help you keep your premiums as low as possible. If you follow this advice you might be able to save some serious cash.
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Before getting quotes make sure you're on the electoral roll – it can affect costs
Being on the electoral roll is not just about being registered to vote – it can also make a difference to your insurance premium. Insurers such as Aviva, Direct Line, Churchill, Privilege, Co-op, and Endsleigh have confirmed that they use the electoral roll as part of the ID-checking process to combat fraud. Not being on the electoral roll, or having incorrect information registered, makes it more difficult for insurers to identify you so they'll probably give you a higher quote or simply not offer cover. If you're not already on the electoral roll it's straightforward to do.
Switch your car insurance provider and get a better deal
Insurers can't charge a loyal customer any more than a new customer for a like-for-like policy following new insurance regulations which came into force at the start of 2022. However this doesn't mean that your insurance price won't go up (or even down) at renewal. Even if your car insurance renewal price isn't that much different from last year it's worth taking a look elsewhere. You might be able to find a similar policy with another provider and slash your costs in minutes just by comparing car insurance quotes.
Pay for your car insurance annually
Where you can paying for your policy annually tends to be cheaper. Though cashflow is often easier when paying monthly it is likely to bump up the price because insurance companies tend to add interest onto these payments making you pay more than you need to. One handy tip is that if you’re able to use a credit card with 0% interest on purchases so you still get the benefit of budgeting monthly without the added charges on top.
Get your mileage right mileage
The more you drive the more the insurance companies see you as a risk. However if you put it too low and hardly drive at all the company could also see that as a risk. To get an accurate estimate compare your last two MOT reports for a rough idea of how much mileage you do in a year.
Enhance your security
The harder it is to steal your car the less of a risk it is. This usually means lower insurance prices so consider things like a steering wheel lock or a tracker (providing they are not too expensive).
Perhaps use a telematics policy
Known as a black box this tailors your insurance costs based on how, when, and how much you drive. There could be some restrictions on how you use your car with a black box such as driving curfews or mileage caps but if you can demonstrate you are a safe driver your premiums could fall.
Think about how you describe your job
The way you describe your job can affect your premium. A "chef" might pay a different premium to a "cook" and a "hairdresser" might pay a different price to a "barber" for example. Remember you have to be honest or you risk invalidating your policy.
Don't add extras you don't need
Think about if you really need extras like:
- Breakdown cover
- Legal expenses cover
- Courtesy car
- Personal accident cover
- Windscreen cover
You might get some of these add-ons as part of another policy or with your bank for example. And you might find that it could be cheaper to buy these extras as separate policies rather than bolting them onto your existing insurance. Remember to shop around for these add-ons too.
Increase your voluntary excess
Your car insurance excess is basically what you have to pay out if you make a claim. So while it can be tempting to put it sky high to lower your premium remember that if you do need to claim on your insurance it will reduce the amount of cash you get when you potentially need it most.
Think about your named drivers
A common hack for first-time drivers because adding a named driver to your car insurance policy could result in a lower premium – especially if the named driver is older or has more experience. But having many drivers on your policy could mean higher insurance costs.
Build up your no-claims bonus discount
Building up your no-claims bonus discount will help you to get a cheaper policy because insurers reward motorists who are claim-free with discounts on their premiums.
Think about what vehicle is best for you
Cars which have a small engine are more likely to be in a low insurance group and tend to have lower premiums. For example a 1.1-litre hatchback would be cheaper than an SUV with a large engine. Road tax on a smaller engine vehicle should also be cheaper. Every insurer will treat every sort of vehicle differently though. For example some classic cars are very affordable to cover as insurers recognise the love that owners put into them and you may find a discount through an owners' club.
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